Indian shares bounced back from earlier losses to close higher on Tuesday, posting their second consecutive session of gains, as a rebound in crude oil prices and global stocks continued to favour riskier assets.
The broader NSE index ended 21.75 points or 0.28 per cent higher at 7,887.80, after falling as much as 0.36 per cent earlier in the session.
The benchmark BSE index closed 83.67 points or 0.33 per cent higher at 25,772.53. It fell as much as 0.29 per cent earlier in the session.
Among BSE sectoral indices, capital goods index gained the most by 1.48 per cent, consumer durables 0.68 per cent, banking 0.62 per cent and healthcare 0.53 per cent. On the other hand, metal index was down 1.16 per cent, auto 0.87 per cent, oil & gas 0.74 per cent and PSU 0.55 per cent.
Top five Sensex gainers were Dr Reddy's (+3.04%), Axis Bank (+2.22%), HUL (+1.93%), L&T (+1.87%) and GAIL (+1.26%), while the major losers were Tata Motors (-3.58%), NTPC (-1.75%), ONGC (-1.65%), Adani Ports (-0.99%) and Asian Paints (-0.83%).
A report by SMC Global said: "Asian stocks outside Japan dropped, with a regional benchmark index heading for its longest losing streak since September 2000, as commodity producers fell with crude oil and industrial metals. Japanese equities climbed as the yen weakened. US stocks struggled to gain a firm foothold in positive territory on Monday as uncertainties in the oil market dragged prices lower, weighing on energy and materials shares. Consumer prices in China were up 2.3 per cent on year in April, the National Bureau of Statistics said - in line with expectations and unchanged from the previous month. Producer prices were down an annual 3.4 per cent versus expectations for a decline of 3.7 per cent following the 4.3 per cent drop in the previous month. On a monthly basis, consumer prices were down 0.2 per cent and producer prices were up 0.7 per cent."
World stock markets rose on Tuesday, helped by some solid corporate earnings in Europe and a new pledge by Japan that it was prepared to step in to weaken its yen currency.
The MSCI All-Country World index climbed 0.4 per cent, the pan-European FTSEurofirst 300 index advanced 1.2 per cent, while the MSCI Emerging Market index also edged higher.
European stock markets built on positive momentum from earlier on in Japan, where the Nikkei rose 2.2 per cent after Japan's Finance Minister Taro Aso reiterated his resolve to intervene in the currency market if the yen's gains last long enough to hurt Japan's fragile economic recovery.
Asian stocks slipped to two-month lows on Monday as weak oil prices weighed on sentiment while the dollar got a lift against its peers as the differences in policy directions between the world's top central banks became starker.
MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.2 per cent, its lowest since March 11. Hong Kong and Chinese stocks led regional markets lower.